Velocity Minerals Ltd.

Velocity Minerals Ltd.

January 28, 2010 04:00 ET

VELOCITY MINERALS LTD.-Update of Activities at Mt Haskin and Cassiar Moly-Moly, Silver, Lead, Zinc Copper and Gold Were All Present in 2009 Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2010) - Velocity Minerals Ltd. (TSX:VLC) is pleased to announce further analytical results from the 2009 programs of work at the Company's 100% owned Mt. Haskin and Cassiar Moly molybdenum properties in northern British Columbia. Acquired in 2008, the properties were the object of rehabilitation, rock sampling and drilling during the 2009 field season. All analytical results have now been received and added to the Company's data base.

Mt. Haskin Molybdenum Property

The Company recently received assay results for the four holes (VEL 14-09, VEL 15-09, VEL 16-09 and VEL 17-09, totalling 783 meters (2567 ft) completed this season on the Mt. Haskin property, which are summarized as follows:

Drill Hole VEL 14-09, vertical, total depth 145 meters (477 ft), was located 60 meters NE of drill hole VEL 01-08 and encountered a 46.3 meter interval from 5.2 meters (17 ft) to 45.9 meters (152 ft) with an average grade of 0.13% Mo, including 7.6 meters (25 ft), from 5.2 meters (17 ft) to 12.7 m (42 ft) with an average grade of 0.255% Mo. 

Drill Hole VEL 15-09, vertical, total depth 200 meters (657 ft.) located 50 meters NNW of drill hole VEL 01-08, tested a possible SW extension of the main molybdenum zone. Narrow widths of "good" molybdenite mineralization were located within a long intercept of low grade material: 67 meters (220 feet) from 11.3 m (37 feet) to 78.3 m (257 ft) graded 0.021% Mo, including 1.52 m (5 feet) intervals of 0.79% Mo, 0.05% Mo and 0.06% Mo respectively. A deep 0.91 meter (3 feet) interval from 145.4 m (477 feet) to 146.3 m (480 feet) returned 53 g/tonne (1.7 oz) silver, 0.2% bismuth, 0.1% copper, 0.12% manganese, 0.05% lead and 0.1% zinc. 

Drill Hole VEL 16-09, vertical, total depth 173 meters (567 feet), located 75 meters NW of drill hole VEL 11-08, intersected 70.1 meters of 0.07% Mo from 32.6 m (107 ft) to 102.7 m (337 ft), including a 24.4 m section of 0.16% Mo from 41.7 m (137 ft) to 66.1 m (217 ft). This drill hole also intersected elevated values of copper, gold, zinc, lead and manganese.

Drill Hole VEL 17-09, vertical, total depth 264 meters (866 ft), located 240 meters SW of drill hole VEL 02-08, was a step-out hole that failed to intersect any significant molybdenum mineralization.

The Mt. Haskin property continues to demonstrate near-surface molybdenite mineralization with grades that elsewhere have been successfully mined. The extensive data base of geological and analytical information is currently being reviewed and a program of further exploration is planned.

Cassiar Moly Molybdenum Property

Due to inclement weather and the early onset of winter conditions, the drilling program was suspended at Cassiar Moly on the first drill hole at 260 feet before reaching the intended target zone. The rig was left on the drill pad and as soon as weather permits drilling will continue. Of note, although the intended target, a richly mineralized shear zone, was not reached before drilling was suspended; the first drill hole had anomalous Mo values from the surface to total depth of 260 ft. Unexpectedly and of tremendous encouragement to management, assay results showed a grade of 0.02% Mo from 62 feet to 260 feet. 

The Company, in a News Release dated October 29th, 2009, reported that it is "…encouraged by results of the underground sampling program since it appears that Zone A and Zone B may define a zone of strong molybdenite mineralization with apparent dimensions of not less than 110 meters width and 267 meters length…". Surface and underground geological work strongly suggest that the mineralization is related to a north-northeast trending fault system that may represent a deep feeder structure. Vertical persistence to at least 250 meters from surface has been shown and the mineral zones found underground are open along strike and at depth. Available data are being assembled and a program of exploration work is being planned. 

Quality Control and Quality Assurance

All drill core samples from holes described above were submitted to Acme Analytical Laboratories Ltd. of Vancouver, B. C., an ISO 9001:2000 company, for analysis. The Company inserted appropriate duplicate, standard and blank samples into its sample shipments to help assure the quality of analytical data. Acme Analytical also follows a strict regime of internal QA/QC protocols. David Boyer, MSc., PG, the Company's consulting geologist for QA/QC reviews, has examined and approved the analytical information presented in this News Release. 

A more detailed description of the Mt Haskin and Cassiar Moly projects is contained in the Amended & Restated Technical Report of the Company filed on July 31, 2009 and available at

This News Release has been reviewed and approved by Erik A. Ostensoe, P. Geo., Velocity's Qualified Person for purposes of its Cassiar, B. C. area projects.

Velocity Minerals Ltd. is a company dedicated to the acquisition and development of advanced or high-grade molybdenum mineral properties. Velocity presently owns the mineral rights to two molybdenum projects in northern British Columbia (Mt. Haskin and Cassiar Moly) and is actively pursuing other properties in North America and internationally.

On behalf of the Board of Directors,

Kenneth R. Holmes, Chairman.

The TSX has neither approved nor disapproved of the information contained herein.

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